12 - ONCOR FRANCHISE AGREEMENT EXTENSIONItem No. 12
memorandum
TO: City Council
John Godwin, City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: ONCOR FRANCHISE AGREEMENT EXTENSION
DATE: September 9, 2016
BACKGROUND: The City of Paris has historically granted Oncor Electric Delivery Company,
LLC or its predecessors a franchise to provide the delivery of electricity to residents and
businesses located within the City by operating in City rights -of -way.
STATUS OF ISSUE: The most recent franchise agreement with Oncor Electric Delivery
Company expired June 30, 2016 and an extension was approved by the City Council through
September 30, 2016. The staff has been in negotiations with Oncor for a new franchise
agreement, but the agreement will not be ready by the end of September plus the new franchise
ordinance will require three public readings. The new extension agreement being presented for
approval allows Oncor and the City to continue to follow the terms of the last franchise
agreement until a new franchise agreement is approved by the City Council and Oncor or April
1, 2017 whichever comes first.
BUDGET: This franchise produces approximately $1,350,000 in revenue annually.
RECOMMENDATION: Motion to approve a letter of understanding between Oncor and the
City of Paris.
ONCRm
Ritchie Sturgeon
Counsel
September 12, 2016
Attorney Stephanie H. Harris
City Attorney
City of Paris, Texas
P.O. Box 9073
Paris, Texas 75460
Dear Attorney Harris,
As the parties have discussed, the existing Franchise between the City of Paris (the "City ") and TXU
Electric Delivery Company (now Oncor Electric Delivery Company LLC [ "Oncor"]) adopted by
Ordinance No. 2006 -021 will expire on October 1, 2016 in accordance with our letter agreement
dated June 27, 2016. This letter confirms that the City and Oncor will continue to operate under the
terms of the current Franchise between the parties adopted in Ordinance No. 2006 -021 until April 1,
2017 or until the parties enter into a new franchise agreement (i.e., adopted by City Council and
accepted by Oncor), whichever comes first. This letter agreement between the City and Oncor
reflects the parties' mutual agreement to continue to be governed by and adhere to the terms of the
existing Franchise as noted in this paragraph. Furthermore, the City and Oncor agree that original
signature(s) or, alternatively, facsimile or e-mail copies of signature(s) are valid for purposes of
evidencing this letter agreement, which may be executed in multiple counterparts.
Accepted:
Oncor Electric Delivery Company LLC
By- e n /P`P�
Ron McCune,
Franchise Manager — Regulatory Affairs
Sincerely,
Q '-.e Ritchie Sturgeo
Counsel for Oncor
Accepted:
City of Paris, Texas
L0
A.J. Hashmi, Mayor
Oncor
1616 Woodall Rodgers Freeway
Dallas, Texas 75202
Tel: 214.486.6345
ritchie.sturgeon@oncor.com